Section 333S of the Act (Financial assistance for action against illegal money lending) provides that the Treasury may make grants or loans, or give other forms of financial assistance, to persons for the purpose of taking action against illegal money lending.

Section 333T of the Act (Funding of action against illegal money lending) requires the Treasury to notify the FCA of the amount of the Treasury’s illegal money lending costs. The FCA must make rules requiring authorised persons, or any specified class of authorised person, to pay to the FCA the specified amounts or amounts calculated in a specified way, with a view to recovering the amounts notified to it by the Treasury.

This chapter sets out the method by which the IML levy will be calculated. Details of the actual levy payable will vary from year to year, depending on the amount of funding provided by the Treasury for the purpose of combatting illegal money lending. These details are set out in FEES 13 Annex 1R. New details will be prepared and consulted on for each financial year.

Calculation of the IML levy

identify whether activity group CC1 or CC2 applies to the business of the firm for the relevant period (for this purpose, the activity groups are defined in accordance with Part 1 of FEES 4 Annex 1AR);

(2)

for each of those activity groups, calculate the amount payable in the way set out in FEES 13.2.4R;

(3)

add the amounts calculated under (2);

(4)

work out whether a minimum fee is payable under Part 2 of FEES 7 Annex 1R and if so how much;

(5)

add together the amounts calculated under (3) and (4);

(6)

modify the result as indicated by the tables in FEES 4.2.6R (Modifications for persons becoming subject to periodic fees during the course of a fee year) and FEES 4.2.7FR (Calculating the fee in the firm’s first year of authorisation) (if applicable);

(7)

apply any applicable payment charge specified in FEES 4.2.4R (Method of payment) to the amount in (6), provided that:

(a)

for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA; or

(b)

for payment by credit transfer, the amount due is received by the FCA on or before the due date; and

(8)

make the calculation using information obtained in accordance with FEES 4.4 (Information on which fees are calculated).

a firm in activity group CC2 may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm’sUK business separately from its non-UK business in the way described in FEES 4 Annex 11BR are disproportionate to the difference in fees payable; and

(b)

it notifies the FCA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or if earlier, at the time it pays the fees concerned; and

(2)

for a firm which has not complied with FEES 4.4.2R (Information on which fees are calculated) for this period, the IML levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period multiplied by the factor of 1.10.

FEES 4 rules incorporated into FEES 13 by cross-reference

The Handbook provisions relating to the IML levy are meant to follow closely the provisions relating to the payment of the periodic fees in FEES 4.3.1R. In the interests of brevity, not all of these provisions are set out again in FEES 13. In some cases, certain FEES 4rules are applied to the payment of the IML levy by individual rules in FEES 13. The rest are set out in the table in FEES 13.2.9R.

In some cases, a FEES 4rule incorporated into FEES 13 in the manner set out in FEES 13.2.7G will refer to another rule in FEES 4 that has not been individually incorporated into FEES 13. Such a reference should be read as being to the corresponding provision in FEES 13.